Availability of Modvat Credit in respect of various items used in the Cement Industry - Representation from Cement Manufacturers Association - Central Excise - 261/25/1/88-CX.8

Availability of Modvat Credit in respect of various items used in the Cement Industry - Representation from Cement Manufacturers Association F. No. 261/25/1/88-CX.8 Dated 16-2-1988 Government of India Ministry of Finance (Department of Revenue) Central Board of Excise Customs, New Delhi Subject : Availability of Modvat Credit in respect of various items used in the Cement Industry - Representation from Cement Manufacturers Association. It has been represented by the Cement Manufacturers Association that the benefit of Modvat Credit should be given on inputs like explosives, grinding media, refractories, lining plates, cooling chains, spare parts, conveyor belts, HDPE bags, diesel oil, printing ink (for marking the bags etc.) used in the manufacture of cement by the cement industry. 2. The matter has been examined by the Board. It has been observed that the above mentioned inputs are either not at all connected with the manufacture of cement or they are used in the form of plant, machinery, tools and appliances etc. and hence cannot be termed as inputs under Rule 57A. It is therefore clarified that none of the inputs mentioned above are eligible for Modvat credit. 3. Field formations may be suitably informed. 4. A suitable trade notice may be issued for the benefit of the trade. 5. Receipt of these instructions may please be acknowledged.